“Considering the fact that in this year’s report methodology changed in seven out of 10 indicators, global ranking of countries in DB2016 showed a significant shift. In this regard, last year’s global rankings, where Montenegro ranked 36th, has been revised so that, under the new methodology for the period June 2013 – June 2014, our country was awarded 47th place. Thus, compared to last year, Montenegro advanced one place, occupying the 46th position in this year’s report”, the Ministry of Finance said in a statement.
Montenegro’s progress recognized in the latest DB report was achieved primarily thanks to reforms in the areas of “issuing construction permits” and “paying taxes”.
“In the area of dealing with construction permits, Montenegro moved up 11 places, taking 91th position in the global ranking, primarily due to activities undertaken in part to shorten the duration of the procedure (158 to 154 days) and reduce costs.. In this year’s report, a new sub-indicator was introduced to evaluate the control of the quality of construction”, said the statement.
In the area of paying taxes, Montenegro made progress by moving up 33 places, occupying the 64th place in the global ranking.
Montenegro has maintained last year’s position in the indicators “enforcing contracts” (43) and “trading across borders” (42).
“When the indicator Starting a Business is concerned, Montenegro has dropped four places (from 55th to 59th place), even though the number of procedures as well as the duration of the proceedings, remained the same, while progress was recognized in ‘cost reduction’ (from 1.6 to 1.4 percent of income per capita)”, the statement said.
In “Getting Electricity”, Montenegro has dropped one place (from 162 to 163), observing an increase in the number of procedures from five to seven, a significant increase in duration of procedure from 71 days to 142 days, while there has been a reduction in costs from 467.9 to 464.8 per cent of per capita income.
“At the same time, we note that this year’s report introduced a new sub-indicator that estimates the reliability of supply and the transparency of tariffs”, the Ministry of Finance explained.
In the field of “Registering Property”, Montenegro has dropped two places, now occupying 79th place in the global ranking.
“Although there has been no positive change in the global ranking, progress was recognized due to a change in methodology which saw the introduction of new sub-indicators that assess the quality of administration”, added the statement.
In the area of Getting Credit, Montenegro made a slight drop from 6th to 7th place in the global ranking, although progress has been made in the index of possession of credit information.
In the area of Protecting Minority Investors, Montenegro recorded a drop of three points, taking 36th place.
When the indicator “Resolving Insolvency” is concerned, Montenegro recorded a drop from 33rd to 36th place, although the situation in the sub-indicators remained unchanged compared to last year. At the same time, Ministry notes that the number of sub-indicators reduced from nine to four.
Regional countries ranked better than Montenegro this year are Macedonia (12), Slovenia (29) and Croatia (40), while Serbia (59), Kosovo (66), Bosnia and Herzegovina (79) and Albania (97) ranked below.
See the full report here: https://www.doingbusiness.org/data/exploreeconomies/montenegro/
